- Benjamin Cowen has identified some unusual behavior in the Bitcoin price metrics.
- Cowen revealed that the Value Days Destroyed Multiple indicator reflects early signals of a potential Bitcoin rally.
- The analyst observed a variation from how the indicator has behaved in previous bull cycles.
Renowned crypto market analyst Benjamin Cowen has identified some unusual behavior in the Bitcoin price metrics. In a recently uploaded video, Cowen revealed that the Value Days Destroyed Multiple indicator reflects early signals of a potential Bitcoin rally. His observations showed a variation from how the indicator has behaved in previous bull cycles, especially in the months leading to the Bitcoin halving events.
Cowen described the Value Days Destroyed Multiple as the product of Coin Days Destroyed and the price. By definition, Coin Days Destroyed is the sum of all native units transferred in a given day multiplied by the amount of days since the native units last transfer.
For instance, if 5 BTC is held in a wallet for 20 days and then moved, it results in 100 Coin Days Destroyed. Hence, Cowen’s analysis reflected a metric showing the product of the Coin Days Destroyed and the price in a graphical form.
Cowen noted that the Bitcoin Value Days Destroyed Multiple has rallied since September last year. That is in contrast to what happened in September 2019, a few months before the previous Bitcoin halving, when it bounced slightly before dropping to lower levels.
As of the time of Cowen’s analysis, the Bitcoin Value Days Destroyed Multiple has reached a value of 2.62. He considers it significantly high compared to the levels reached in the previous bull cycles. For instance, it topped out at just under 4 in 2021, a few months before Bitcoin reached its all-time high (ATH).
Cowen showed that the metric under observation surpassed its 2019 level despite a higher BTC rally at that time. The analyst considers the Value Days Destroyed Multiple a significant indicator, citing its unusual behavior as something BTC investors should observe closely.
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